What You Need Has Never Been Cheaper vs. What You Want:
- The chart below shows the ratio of Consumer Staples to Consumer Discretionary stocks is now LOWER than at the peak of the internet bubble
- Embracing emotions, the market is obsessed with IPOs, SPACs and chasing quick profits in the most speculative market in modern history
- Kailash believes Staples offer an immensely valuable port in a storm of speculation
- Although firms like Zoom and Tesla are priced for perpetual perfection, Kailash is uncertain if they will dominate their industries for even 5 years
- In contrast – Kailash has high conviction that people will still smoke, drink, eat, clean their homes and put their kids in diapers for decades to come
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See “The Case for Buying What You Know and Need” and “Income Investing: Staples & IT” for compelling historical evidence suggesting today is one of the best times in history to invest in a select group of staples.
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January 29, 2021 |
| Authors: Matthew Malgari, Nathan Przybylo, Dr. Sanjeev Bhojraj and John Durkin
January 29, 2021
Authors: Matthew Malgari, Nathan Przybylo, Dr. Sanjeev Bhojraj and John Durkin